Liquidity Trends Suggest 'Uptober' Could Be the Start of a New Crypto Bull Run
It was hard not to take notice of the “uptober” crypto rally. Bellwether BTC was up over 35% since October, and assets such as LINK and SOL are up two or three times that much.
Less explored, though, are the liquidity trends underpinning this price action. Observing these can help us gauge where we are in the cycle and thus navigate what the future market might hold.
This post is part of Consensus Magazine's Trading Week, presented by CME.
As we highlighted for CoinDesk earlier in the year, price changes with low trading volumes are less reliable indicators than those with higher volumes. Low volumes suggest limited market participation at a particular price level, potentially leading to greater price volatility and reduced market depth.
Conversely, higher trading volumes signify broader market participation, indicating a stronger consensus and offering a more dependable basis for price movements, thereby bolstering the credibility of the signal.
Trade volume recovery in BTC and ETH, the most watched liquidity metric, is eye-catching. Two of the top-15 trading volume days since the market top two years ago were recorded during this recent rally. And most of the other high-volume days happened as dramatic company failures were taking place in 2022, or as several mid-sized U.S. banks got into difficulty in March 2023. BTC Spot volumes, which until September were breaking three-year lows, have steeply recovered and are now approaching six-month highs.
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Standard Chartered unit, SBI Holdings team up to invest $100 million in crypto startups
SC Ventures, the investment arm of the Standard Chartered bank, and SBI Holdings, the Japanese financial conglomerate, have partnered to set up a $100 million crypto vehicle in the United Arab Emirates.
The vehicle, in the form of a joint venture, plans to invest in crypto across areas such as decentralized finance, tokenization, infrastructure, payments and the metaverse, the two companies said Thursday. It aims to invest globally, covering seed to Series C funding rounds.
The news comes with crypto markets showing signs of recovery, hinting at potentially bullish sentiment. Bitcoin is currently trading at about $36,800, marking a year-to-date gain of over 120%. Spot crypto trading volume on centralized exchanges also increased in October following four months of decline. If those metrics point to renewed interest in crypto, it is likely in anticipation of a spot bitcoin ETF approval early next year.
www.theblock.co/post/262317/standard-chartered-unit-sbi-holdings-crypto
FTX Sues Crypto Firm Bybit to Recover Assets Worth $953 Million
FTX claims Bybit affiliate used “VIP” status to withdraw funds Bybit’s Mirana withdrew $327 million just before FTX pause
FTX’s bankruptcy advisers sued crypto exchange Bybit Fintech Ltd and two corporate affiliates to recover cash and digital assets valued at roughly $953 million that was withdrawn from Sam Bankman-Fried’s crypto exchange before it filed Chapter 11 a year ago.
The lawsuit filed Friday in Delaware court alleges Bybit’s investment arm, Mirana Corp., had special “VIP” benefits, which most FTX customers didn’t have, and used those special privileges to get most of its assets off Bankman-Fried’s platform before it collapsed in November 2022.
really nice looking game.
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The Dawn of Web 3: A New Era of the Internet
Introduction
The internet has come a long way since its inception. We've witnessed the transition from the static web of the 1990s to the interactive Web 2.0 of the 2000s, which brought us social media, online collaboration, and user-generated content. Now, a new era is upon us: Web 3. Often touted as the future of the internet, Web 3 promises to revolutionize the way we interact online, leveraging blockchain technology, decentralized systems, and advanced protocols to create a more open, secure, and user-centric web experience.
Understanding Web 3
Web 3, often referred to as the "decentralized web," is a paradigm shift in how we conceive and interact with the internet. Unlike its predecessor, Web 2.0, which relies heavily on centralized servers controlled by tech giants, Web 3 aims to decentralize the internet infrastructure, giving more power and control back to users.
Key Features of Web 3:
Blockchain Technology: At the heart of Web 3 is blockchain technology. Blockchains are decentralized ledgers that record transactions across a network of computers, ensuring transparency, immutability, and security. They enable the creation of decentralized applications (dApps) and smart contracts, which can operate without the need for intermediaries.
Decentralization: Web 3 seeks to eliminate single points of failure by distributing data and services across a network of nodes. This makes the internet more resistant to censorship and less vulnerable to data breaches.
Data Ownership and Privacy: Web 3 envisions a world where users have complete control over their data. Instead of companies collecting and monetizing user data, individuals can choose what data they share and with whom, thanks to cryptographic techniques and decentralized identity systems.
Interoperability: Web 3 aims to break down the silos that exist between different online platforms and services. This interoperability allows users to seamlessly move their data and digital assets between various applications and ecosystems.
Tokenization: Digital assets and cryptocurrencies play a significant role in Web 3. Tokens can represent ownership, value, or access rights in a decentralized network. This tokenization can revolutionize industries like finance, gaming, and content creation.
Applications of Web 3
Web 3 has far-reaching implications across various sectors:
DeFi (Decentralized Finance): Web 3 enables the creation of decentralized financial systems that allow users to trade, borrow, lend, and earn interest without relying on traditional banks or intermediaries.
NFTs (Non-Fungible Tokens): Non-fungible tokens, built on Web 3, have revolutionized digital ownership, enabling artists, creators, and collectors to buy, sell, and trade unique digital assets.
DAOs (Decentralized Autonomous Organizations): DAOs are entities governed by code and operated by their members. They use blockchain technology to make decisions and manage resources, potentially disrupting traditional organizational structures.
Content Creation: Web 3 offers new opportunities for content creators to monetize their work directly through microtransactions, subscription models, or token rewards, without relying on advertising revenue.
Conclusion
Web 3 represents a significant shift in the evolution of the internet. It promises a more democratic, user-centric, and secure online experience. While it is still in its early stages, Web 3 is already sparking innovation in various industries, from finance to art, and has the potential to reshape the digital landscape. As we move forward, it will be essential to address the challenges of scalability, usability, and regulation to fully realize the potential of the decentralized web. Regardless, the dawn of Web 3 marks an exciting chapter in the ongoing story of the internet's evolution.